Cleveland Research has recently reduced Snowflake Inc (SNOW) stock to Neutral rating, as announced on October 22, 2024, according to Finviz. Earlier, on October 1, 2024, Argus had initiated the stock to Hold. HSBC Securities also raised Hold rating with a price target of $121. Additionally, Wells Fargo reduced Equal Weight rating on August 15, 2024, with a target price of $130. Exane BNP Paribas analysts, in their report published on May 2, 2024, also raised Outperform rating for Snowflake Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Snowflake Inc (SNOW) Stock Trading Recap
On Tuesday, Snowflake Inc (SNOW) stock saw a modest uptick, ending the day at $116.5 which represents a slight increase of $2.76 or 2.43% from the prior close of $113.74. The stock opened at $114.26 and touched a low of $113.65 during the day, reaching a high of $117.34. The volume of shares traded was 3.76 million falling short of the average volume of 6.63 million.
SNOW Stock Performance and Moving Averages
In recent trading, Snowflake Inc (SNOW) stock price has shown some volatility, fluctuating -1.60% over the last five trades and 2.35% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -26.77%, and it has gained 1.22% in the previous three months. Currently, SNOW is trading at -1.51%, 1.60%, and -20.65% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, SNOW, a Technology sector stock, is trading -50.99% below its 52-week high but remains 8.75% above its 52-week low. The Average True Range (ATR) (14 days) of 3.58 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Snowflake Inc’s Profitability and Valuation Ratios
Snowflake Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of -38.59% and a profit margin of -31.73%, with a gross margin of -26.77%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Snowflake Inc’s market capitalization stands at $39.05 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 128.22. Additionally, the Price-to-Sales Ratio is 12.18, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 9.47, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 7.71% of Snowflake Inc (SNOW)’s shares, while financial institutions hold 61.14%.
Notable insider trades include Kleinerman Christian, EVP, Product Management at Snowflake Inc (SNOW), who sold 30000 shares on Oct 10 ’24, at $120 each, totaling $3.60 million. On Sep 17 ’24, Slootman Frank, Director, sold 6251 shares for $114.39 each, amounting to $0.72 million. Additionally, on Sep 17 ’24, Kleinerman Christian sold 3029 shares at $114.39 each, generating $0.35 million.
